VAT Spot checks

VAT Spot checks

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I've had a call from a client who has just opened a new business and VAT registered we put in their first return which was a refund. They have had an unannounced visit from the VAT at home today because it is the registered address.

The client contacted me and asked me to speak to the VAT person to answer some questions. I asked about the visit and he told me these unannounced visits had been going on about 4 weeks and it was a new thing from "head office". I've had clients visits before but they've always been by appointment so I could attend and support if the client requested it.

Does anyone out there know if these spot checks are allowed and what happens if you refuse to allow them in if its not convenient. (It wasn't in this case - the Director was out but his girlfriend let the VAT man in because she didn't know what to do.)

Lesley Barnes

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By User deleted
18th Jun 2008 19:22

They're checking your client exists...
... as much as anything else.

They are allowed to this type of unannounced visit provided it is at a reasonable time. It would have been quite acceptable for the inspector to have been turned away because there was no one there to deal with their enquiries.

As far as I am aware this is not a new thing from 'head office' its been done for years. One of their checks, particularly where the first return is for a reasonably sized repayment, is to visit the business's premises to make sure that it exists and isn't just an accommodation address. Its aimed at combating missing trader fraud - where someone registers for VAT, puts in a refund claim and then vanishes with the money - not to be heard of again until they need some more money.

Robert

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By AnonymousUser
18th Jun 2008 16:31

Same but different
I've had something similar I submitted a Vat return with a refund a couple of days later (8am in the morning) I got a phone call from our local Vat office telling me (not asking) that they would be around to check the transactions backing up the Vat return. I though it was a bit odd at the time but put it down to the refund and lack of work for the inspectors

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